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Ruling sets back music industry's piracy battle







Ruling sets back music industry's piracy
battle

Ruling sets back music industry's piracy
battle
08/19/2004 11:06 PM

USA Today Aug 20 2004 3:11AM GMT




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Ruling sets back music industry's piracy battle

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  • Steven Levy (Newsweek): iTunes and Lawsuits. Isn't it obvious by now that by accelerating the momentum of online stores like iTunes (and also promoting subscription services like Rhapsody, which can potentially deliver huge royalties to the industry) the industry will move quicker to a model from which it could launch hundreds of new ways to make money? (Jobs himself suggested one: sell out-of-catalog music now rotting in storage rooms for low prices.) Isn't this a better way to move towards the future than suing college students? How many times does the same chorus have to play before music execs can hum along?

  • Could Libraries Help the Music
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    "Our research shows that it's the people who are really into music that are beginning to adopt paid digital services as an additional way of acquiring and enjoying music, and so far, these services are living side by side with traditional CDs," Russ Crupnick, president of NPD MusicWatch, said in a statement. 'As the industry matures, and digital music becomes even more mainstream, it remains to be seen just how much paid digital music will affect the market for CDs.' " [CNET News.com]

    It would be interesting to see if those numbers went up if library patrons could listen to digital music online at home for free using their library card for authentication. Would they then spend even more money on CDs or purchasing tracks because they were able to hear them legally in their entirety first?

    Conversely, it would be interesting to do a study of library patrons who borrow CDs from libraries to see if they end up purchasing more music than those that don't. Perhaps the music industry should be working more closely with libraries as listening outlets.


    Canadian music industry's fake stats
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    Cory Doctorow: Copyfighting Canadian lawyer Michael Geist has a hell of an article up on First Monday where he dissect the funny arithmetic the music industry has used to justify its calls for restrictive new Canadian copyright laws to "save Canadian aritsts." This kind of incisive analysis cuts straight through the music-industry BS -- it's a breath of fresh air that is sorely needed.
    Although royalty rates vary between artists, the consensus estimate is that the combined royalties earned by both the performer and the songwriter stand at approximately 12 percent. In fact, Sanderson Taylor, a leading Canadian music law firm, maintains that the actual royalty earned by the artists is typically even lower, since the producer’s royalty is taken from the artists’ compensation and many contracts do not provide for a full royalty for CD sales [21].

    Assuming artists receive the full 12 percent royalty, the annual royalty loss attributable to music downloading in Canada is about C$655,000 (12 percent of C$5.5 million). For those that claim that the full industry loss should be counted, the annual lost royalty for Canadian artists stands at C$2 million...

    Given the tens of millions of dollars that the Canadian government spends annually to support the creation of Canadian music [23], it is apparent that the relative impact of lost royalties due to file–sharing pales by comparison.

    Link (via /.)

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    You have to wonder sometimes whether or not the recording industry will ever figure this out, but the power of digital music to make a better, more informed and more willing to buy consumer seems completely lost on them. Andrew Leonard, over at Salon, has written a great essay on how the digitalization of music files has changed his music consumption habits. Note that he's not talking about downloading music from file sharing systems, but having the freedom to discover new music easily, obtain that music without too many hurdles, and then do with it what he wants. That's what's so powerful. While the industry is entirely focused on people "not paying" for music, they're missing the opportunity to engage all those who just want to be better music consumers. And, as Leonard points out, no matter how hard they try, the economics of supply and demand show that the industry will never win this battle. "Instead of trying to prevent me from enjoying my own music, the recording industry should be working as hard as it can to get everything online and available, cheaply. It should be making it easier for me to rip and burn to my heart's content. Because when I'm happy listening to music, it doesn't take much encouragement for me to spend more money."

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    The Tech Law Advisory reports that the Video Software Dealers Association (VSDA) has joined the fight against P2P piracy. It is being reported that the VSDA is openly showing support for MPAA’s public education campaign as well as their efforts to use legal efforts to shut down Grokster and Morpheus. Man, it seems like every time we turn around, there is another P2P battle going on. First it was the music industry, now it is…

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    Wired News: Speaking of Music Piracy
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    Wired News: Speaking of Music Piracy
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    wired.com/news/digiwood/0,1412,62995,00.html?tw=wn_tophead_5
    track this site | 4 links


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